While you should get life insurance early in life to ensure your loved ones will be protected if the unexpected happens, there are also a few hidden benefits of getting coverage. Most people don’t realize that life insurance can be used as a savings or investment tool. After you explore the following advantages, you may be even more motivated to contact an agent for a life insurance quote in Mesa, AZ.
Enjoy a Tax-Free Payout
Upon your death, the beneficiaries you name in your policy will receive a lump sum payment. This money will be delivered to them tax-free, and they won’t be obligated to report the payout on their income tax returns. This is because the government doesn’t consider a life insurance payment to be taxable income.
Get Coverage For a Chronic Illness
You can add a rider to your policy that will allow you to access your death benefit if you’re diagnosed with a serious or terminal medical condition. In treating a chronic illness, the expenses can become staggering especially if you’re facing a situation in which you’ll no longer be able to care for yourself on a daily basis. An accelerated benefits rider will give you the means to pay for your future care needs.
Supplement Your Retirement
Many retirees find that they haven’t saved enough to support themselves throughout their retirement. If you have paid into your life insurance policy consistently throughout your life, you have built up a cash value that you can use to supplement your retirement income. Upon requesting a life insurance quote in Mesa, AZ, ask your agent about this possibility. They can help you understand more about using your policy to get extra financial help in retirement.